In an chat with ET, Prakash Diwan of Altamount Capital has recommended an investment in three mid-cap stocks:
MCX – A unique business model with value:
Some stocks which had not risen too much may also be a good buy. Such stocks did not take a beating; they neither rose swiftly. One of such stocks is MCX.
MCX has fallen to sub-Rs 1,000 from Rs 1,300 levels, a hefty correction of 30 per cent.
It is great value from an unique business perspective. May be the financials at this time might still be falling in place; they will take some time to improve.
But MCX as a business, as a unique entity, now with everything getting cleaned up, is available at sub-Rs 1,000 levels.
The stock has not seen any massive rally from say Rs 800 to Rs 1,600 levels. Thus, you need not be worried over the valuations.
It is a concept stock, a new age stock or whatever you may classify. So, there is enough value.
Eveready – reasonable valuations:
Eveready also started running up and there was momentum that took the scrip all the way to Rs 300 plus levels. The stock though retreated later. Today, it is available at a decent valuation.
Marico Kaya – good value:
Marico Kaya qualifies as a value buy to a large extent. It has fallen from the levels of Rs 2,300 to Rs 1,600-bracket. The quarterly numbers clocked by the company were lower than expectations. You have to be slightly choosey when picking midcap names.